Immunodiagnostic Systems Hldgs PLC AGM Statement (4478F)
July 28 2016 - 2:00AM
UK Regulatory
TIDMIDH
RNS Number : 4478F
Immunodiagnostic Systems Hldgs PLC
28 July 2016
AGM Statement
Immunodiagnostic Systems Holdings PLC
28 July 2016
28 July 2016
Immunodiagnostic Systems Holdings plc
AGM Statement
Immunodiagnostic Systems Holdings PLC ("the Group"), a
specialist producer of manual and automated diagnostic testing kits
and instruments for the clinical market, will today hold its Annual
General Meeting at 12 noon at its registered office at 10 Didcot
Way, Boldon Business Park, Boldon, Tyne & Wear, NE35 9PD.
At the meeting the Chairman, Dr. Burkhard Wittek, will make the
following statement to shareholders.
"Group revenue (unaudited) for Q1 FY2017 is GBP9.5m, 7% lower
than for the same period last year. On a like for like basis (i.e.
at constant scope and constant exchange rates) the decrease
amounted to 11%.
Revenues in our automated CLIA business are GBP5.0m, 3% higher
than Q1 2016. Automated 25OH Vitamin D revenue continued to decline
at a rate of 20% compared to Q1, with our main laboratory customers
continuing to transfer this assay to workhorse analysers after
termination of their contractual obligations with the Group.
Conversely, our automated business excluding 25OH Vitamin D, which
represents around half of our automated business and is referred to
as our endocrinology excellence menu, grew by 15% compared to the
same period last year. This is one of our key KPIs as these assays
are exposed to less competition from the workhorse analysers. The
growth in Q1 of FY 2017 represents an acceleration in revenue when
measured against the growth of 3% recorded in full FY 2016.
Manual assay revenues are GBP3.1m, a decline of 9% compared to
Q1 2016. The majority of the decline is caused by lower 25OH
Vitamin D revenues, as customers transfer this assay to their
workhorses once automated assays are available. This rate of
decline compares with a decline of 29% in FY 2016 (excluding the
impact of the Diametra acquisition), indicating a slowdown in the
rate of revenue losses.
License and technology income declined by 26% to GBP1.4m
compared to Q1 2016 as a result of the reduction in royalty income
from one major customer which was announced last month. This
decline will continue throughout the remainder of the year and will
have a significant impact on group profits and cash flow.
Gross placements of analyzers in markets with direct sales
organizations were 8 in Q1 2017. Net placements, after returns,
stood at 5 in the quarter. This is an improvement over the 12 net
returns recorded in FY 2016. We believe that at least in Europe,
the Group has a sufficient assay menu today to revert to a positive
net placement number.
In the current financial year the Group has launched one new
CLIA assay, 17OH Progesterone, for sale in both the European and US
markets, bringing the total menu to 16 assays in Europe and 10 in
the USA.
As of 30 June 2016 the Group employed 299 people on a full time
employment basis (31 March 2016 : 315 persons). Closing cash and
cash equivalents were GBP27.8m at 30 June 2016 (31 March 2016:
GBP26.6m).
The management team is working hard to correct the causes for
the loss of revenues in order to return to a growth trajectory:
major projects are the improvement in the sales processes across
the organization as well as increasing the output of our assay
development group. In addition the company has initiated a program
to reduce the cost base by GBP3m -GBP4m per year."
This announcement includes inside information.
For further information:
Immunodiagnostic Systems Holdings plc Tel : +44 (0)191 5190660
Patricio Lacalle, Chief Executive Officer
Paul Martin, Group Finance Director
Peel Hunt LLP Tel : +44 (0)207 418 8900
James Steel
Oliver Jackson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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